In an era of digital transformation, where financial markets are ever-evolving, online trading platforms have emerged as game-changers, offering individuals unprecedented opportunities to engage in global markets from the comfort of their homes. One such platform that has garnered significant attention is Plus500, a leading provider of Contracts for Difference (CFD) trading.
This comprehensive Plus500 review aims to delve into the intricacies of this renowned trading platform, examining its features, strengths, weaknesses, and overall user experience. Whether you are an experienced trader seeking a reliable platform or a novice eager to embark on your trading journey, this review will serve as a valuable resource to help you make an informed decision.
Throughout this review, we will explore the various facets that make Plus500 stand out from its competitors. We will discuss the platform’s intuitive interface, its wide range of tradable instruments, the availability of innovative trading tools, the robustness of its security measures, and the level of customer support it provides.
Moreover, we will dive into Plus500’s regulatory compliance, analyzing its licensing and oversight by prominent financial authorities. This is crucial in ensuring the safety of traders’ funds and establishing trust in the platform’s operations.
Additionally, we will shed light on Plus500’s mobile trading capabilities, examining the availability and functionality of its mobile applications. With the rise of smartphones and tablets, the ability to trade on-the-go has become a vital aspect for modern traders, and we will assess how Plus500 caters to this demand.
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Cryptocurrency assets are volatile in nature. Buy and trade at your own risk.
Trading with financial instruments carries high level of risks that is not suitable for all investors. Before making any investment decisions, you should seek advice from independent financial advisor to ensure you understand the risks involved.
Trading with financial instruments carries high level of risks that is not suitable for all investors. Before making any investment decisions, you should seek advice from independent financial advisor to ensure you understand the risks involved.
Furthermore, this review will touch upon Plus500’s educational resources and trading community, evaluating the extent to which the platform supports its users in enhancing their trading skills and knowledge. Learning materials, tutorials, and market analysis tools can significantly contribute to a trader’s success, and we will explore how Plus500 delivers in this aspect.
By the end of this review, you will have gained a comprehensive understanding of Plus500, enabling you to determine whether it aligns with your trading goals and aspirations. We will provide an unbiased analysis, highlighting both the platform’s strengths and areas for improvement, allowing you to make an educated decision regarding your trading journey.
Embark on this exploration of Plus500, as we uncover the trading world and shed light on the features and functionalities that have made this platform a popular choice among traders worldwide.
What Is Plus500?
Plus500 is an online trading platform that enables individuals to trade a wide range of financial instruments, including stocks, cryptocurrencies, commodities, indices, and forex through Contracts for Difference (CFDs). CFDs are derivative financial products that allow traders to speculate on the price movements of various assets without actually owning them.
Established in 2008, Plus500 has become a prominent player in the trading industry, serving millions of customers globally. The platform provides a user-friendly interface and a range of tools and features to facilitate trading activities. It operates on a proprietary trading technology, offering both web-based and mobile applications for seamless access across different devices.
One of the key advantages of trading with Plus500 is the availability of a diverse selection of tradable instruments. Traders can access a wide range of markets, including major global stock exchanges, popular cryptocurrencies like Bitcoin and Ethereum, commodities like gold and oil, global indices such as the S&P 500 and FTSE 100, and numerous forex currency pairs.
Moreover, Plus500 offers a range of trading tools and features designed to enhance the trading experience. These include real-time market quotes, interactive charts, customizable indicators, risk management tools like stop loss and take profit orders, and access to economic calendars for staying updated on relevant market events.
In terms of security and regulation, Plus500 operates under strict regulatory frameworks. It is authorized and regulated by multiple reputable financial authorities, such as the Financial Conduct Authority (FCA) in the United Kingdom, the Australian Securities and Investments Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC), among others. This regulatory oversight helps ensure the platform’s compliance with industry standards and provides traders with a level of trust and security.
Overall, Plus500 aims to provide a reliable and accessible platform for traders of all experience levels. Its intuitive interface, extensive range of tradable instruments, comprehensive trading tools, and robust regulatory compliance have contributed to its popularity among traders seeking to participate in global financial markets.
Pros and Cons
| Pros | Cons |
| User-friendly platform | Limited product offerings |
| No commissions on trades | Limited research and educational resources |
| Wide range of financial instruments | Limited customer support options |
| Demo account for practice | Inactivity fees for dormant accounts |
| Mobile trading app | Limited availability in certain countries |
| Tight spreads and competitive pricing | No integration with third-party trading platforms |
| Negative balance protection | Limited advanced trading features |
| Regulated by reputable authorities | Limited order types and trading tools |
| Quick and easy account registration | Limited customization options for charts and graphs |
Plus500 Key Features
Plus500 Trading Platform
Plus500’s custom platform and features are available on a variety of devices, including desktop and mobile. One of the most appealing aspects of Plus500’s platform is its proprietary trading platform WebTrader, which is used to conduct Plus500 online trading. The WebTrader web trading platform provides clients with a streamlined trading experience and an intuitive interface that is suitable for both novice and experienced traders.
Plus500 allows you to trade cryptocurrencies (availability subject to regulation), but only as CFD products. An exchange wallet has now been integrated into the platform for this purpose.
Plus500 Demo Account
Another great feature is the Plus500 demo account, which is especially useful for inexperienced traders. Clients can use a completely free demo account to practice various trading strategies before putting any real money at risk.
Plus500 is dedicated to the ongoing development of its clients’ trading abilities, particularly those of its most junior traders. In order to fulfill this commitment, Plus500 provides a free demo account as well as educational materials to assist the most inexperienced traders in their trading.
Calendar
The platform includes an in-built newsfeed and economic calendar, allowing traders to stay up to date on the latest news and economic data releases without leaving the platform or relying on third-party software. This is an essential feature of a good CFD broker.
Unfortunately, Plus500 does not support the popular MetaTrader 4 platform. Clients will, however, continue to have access to high-quality technical analysis charts and a variety of technical indicators to help them trade.
Mobile Trading Platform
For clients who want to access their trading platform via mobile or tablet (iOS and Android), Plus500 has similar software available for download. The Plus500 app has the same functionality as the desktop application.
New customers can open an account, make a deposit, and begin trading all of the CFD products available on the web platform via the mobile trading platform.
On both the iOS and Android app stores, the Plus500 mobile trading app currently has 4.3 star ratings.
Fees and Commissions
Plus500 is known for its fee structure, which is relatively straightforward. Here are the main fees and commissions associated with Plus500:
- Trading Fees: Plus500 does not charge any commissions on trades. Instead, they generate revenue through the spread, which is the difference between the buying and selling price of an instrument.
- Inactivity Fee: Plus500 charges an inactivity fee if you don’t log in to your account or don’t trade for a consecutive period of three months (90 days). The fee is $10 per month and is deducted from your account balance. However, the inactivity fee cannot exceed the available funds in your account.
- Overnight Funding: If you hold positions overnight (beyond a specific time set by Plus500), you may incur overnight funding charges. These charges are based on the underlying market conditions and can be positive or negative, depending on the instrument and your position (long or short).
It’s important to note that fees and commissions may vary depending on the financial instrument you trade and the specific market conditions. It’s always a good idea to review the latest fee schedule on Plus500’s official website or contact their customer support for the most accurate and up-to-date information.
Opening an Account on Plus500
Opening an account with Plus500 is a simple process. To begin, go to their website.
On their homepage, the “start trading now” option is located on the bottom left-hand side of the screen. When you click that, you should be directed to the Plus500 login page, where you can create an account. You can sign up for an account using Facebook, Email, or your Apple ID.
After you’ve opened an account, you’ll need to fund it before you can start trading. Select “Funds” on the bottom left-hand side of your screen to do so. As shown in the image above, selecting this menu item gives you the option to deposit and withdraw funds.
Plus500 will ask you some questions about your trading and professional experience, as well as your financial background, before you can deposit funds into your account.
You will also be required to follow KYC regulations, which require you to verify your identity using your ID, address, and Tax ID Number. You will be able to begin depositing funds into your account once you have met these requirements.
Security
Plus500 is considered to be a relatively secure online trading platform. Here are some factors that contribute to its security:
- Regulatory Compliance: Plus500 operates under the supervision of multiple regulatory authorities, including the Financial Conduct Authority (FCA) in the United Kingdom, the Australian Securities and Investments Commission (ASIC) in Australia, and the Cyprus Securities and Exchange Commission (CySEC) in Cyprus. These regulatory bodies enforce strict guidelines and regulations to ensure the protection of traders’ funds and maintain market integrity.
- Segregated Client Funds: Plus500 keeps client funds separate from its own operational funds. This means that your money is held in segregated bank accounts, providing an additional layer of protection in the event of any financial difficulties faced by the company.
- Negative Balance Protection: Plus500 offers negative balance protection to its clients. This means that your account balance cannot go below zero, even if there are significant market movements that result in losses exceeding your available funds. This feature ensures that you will not owe the company any additional money beyond what you have invested.
- Two-Factor Authentication (2FA): Plus500 provides the option to enable two-factor authentication for your account. This adds an extra layer of security by requiring you to provide a second verification factor, such as a unique code sent to your mobile device, in addition to your login credentials.
- Encryption and Secure Transactions: Plus500 employs advanced encryption technologies to secure communication between your device and their servers. This helps protect your personal and financial information from unauthorized access.
While Plus500 takes several security measures, it’s important to remember that no online platform is entirely immune to risks. It’s always advisable to practice good security hygiene, such as using strong passwords, keeping your software up to date, and being cautious of phishing attempts.
Plus500 vs Competitors
Let’s compare Plus500 with two other similar platforms, eToro and IG Markets.
| Features/Benefits | Plus500 | eToro | IG Markets |
|---|---|---|---|
| Regulatory Body | FCA, ASIC, CySEC, MAS, FMA, and others | ASIC, FCA, CySEC | FCA, ASIC, MAS, and others |
| Platform(s) | Proprietary platform | Proprietary platform, MetaTrader 4 | IG’s proprietary platform, MetaTrader 4 |
| Asset Classes | Forex, Indices, Commodities, Stocks, ETFs, Options, Cryptocurrencies | Forex, Indices, Commodities, Stocks, ETFs, Cryptocurrencies | Forex, Indices, Shares, Commodities, Crypto |
| Minimum Deposit | $100 | $200 | £250 or equivalent (as per 2021) |
| Execution Type | Market Maker | STP (Straight Through Processing) | Market Maker |
| Spreads | Fixed and variable, from 0.6 pips | Variable, from 1 pip | Starts from 0.6 pips |
| Maximum Leverage | Up to 1:30 (for retail clients), up to 1:300 (for professional clients) | Up to 1:30 (for retail clients), up to 1:400 (for professional clients) | Varies by region, up to 1:200 for Forex |
| Demo Account | Yes | Yes | Yes |
| Customer Support | 24/7 | 24/5 | 24/5 |
| Education & Research | Yes | Yes | Yes |
Remember that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Plus500 Education and Research
When compared to education leaders such as City Index, IG, or CMC Markets, Plus500 does not provide a wide range of educational content for traders. However, with the launch of its Trading Academy, which includes video content, webinars, and written articles, Plus500 has made significant progress in the education category. Plus500 has also made content from the Corellian Academy, as well as the broker’s newly added Trader’s Guide series, available on its YouTube channel.
Plus500 has a Trader’s Guide section with a few articles and about a dozen educational videos. Plus500’s financial markets education offerings are limited to a few articles and an eBook, especially when compared to the best brokers in this category.
Increasing the number of videos and articles available would assist Plus500 in expanding its otherwise limited educational offering. Adding interactive courses with progress tracking and quizzes would be a natural next step for Plus500 to take in order to improve its educational content. While the videos in the Trader’s Guide series are excellent, many of them feel like platform tutorials.
Conclusion
In conclusion, Plus500 is a popular online trading platform that offers a user-friendly experience, competitive pricing, and a wide range of financial instruments. It operates under the supervision of reputable regulatory authorities and provides several security measures, including regulatory compliance, segregated client funds, negative balance protection, and two-factor authentication.
While Plus500 has its strengths, such as its fee structure and intuitive platform, it also has some limitations. These include a limited product offering, sparse research and educational resources, and limited customer support options. Additionally, the platform may have certain restrictions on availability in specific countries.
It’s important for potential users to carefully consider their individual trading needs and preferences. Conducting thorough research, understanding the risks associated with trading, and reviewing the terms and conditions of Plus500 are crucial steps before opening an account.
Ultimately, Plus500 can be a suitable choice for traders seeking a user-friendly platform with competitive pricing and a diverse range of financial instruments. However, it’s always advisable to compare different trading platforms, weigh the pros and cons, and make an informed decision based on personal requirements and risk tolerance.
Frequently Asked Questions
Is Plus500 good for beginners?
While Plus500 currently has a limited selection of educational materials, it remains a good choice for beginners due to the ease-of-use factor of its software. In comparison to the complex trading platforms offered by other brokers, the Plus500 trading platform’s design simplicity makes it easy for a beginner to navigate and learn the software.
While there is no guarantee that you will succeed, using a less complex trading platform is important for beginners who want to avoid a steep learning curve.
Is Plus500 a scam?
Plus500 is not a rip-off. It is a well-established company with offices in reputable countries (for example, Cyprus, Australia, and the United Kingdom).
Plus500 is subject to the oversight of a number of public bodies that audit its accounts, practices, and operations in order to be able to offer financial services in all of the countries where they operate – bodies similar to the UK’s Financial Conduct Authority.
Is Plus500 a good broker?
Plus500 is a well-rounded broker with a growing selection of trading tools and advanced charting on its trading platform suite that continues to improve its offering for both beginners and advanced traders.
Plus500 is also a trusted broker due to its years of operation (since 2008) and numerous regulatory licenses in Tier-1 jurisdictions such as the United Kingdom, the European Union, Australia, and Singapore. In 2013, the broker was listed on the London Stock Exchange (ticker symbol LSE: PLUS), exposing itself to reporting requirements, and is now one of the largest 250 public companies on the FTSE 250 index.
